Which of the following statements about the Committee on Public Undertakings is/are correct? 1. There are more members from the Rajya Sabha than the Lok Sabha in the Committee. 2. The Chairperson of the Committee is appointed by the Speaker of the Lok Sabha. Select the correct answer using the code given below.

1. Introduction to Parliamentary Committees (basic)

Imagine the Parliament as a massive engine. While the main floor of the House is where the 'noise' and big debates happen, the **Parliamentary Committees** are the silent, efficient gears working behind the scenes. Because the Parliament has limited time and the nature of modern legislation is highly technical, it cannot scrutinize every bill or every rupee of expenditure in detail. These committees act as the 'eyes and ears' of the legislature, ensuring that the Executive (the government) remains accountable to the people. However, not every group of MPs meeting together is a 'Parliamentary Committee.' To earn that title, a committee must strictly fulfill four essential conditions:

• It must be **appointed or elected** by the House or **nominated** by the Speaker/Chairman.
• It must work under the **direction of the Speaker/Chairman**.
• It must present its **report to the House** or to the Speaker/Chairman.
• It must have a **secretariat** provided by the Lok Sabha or Rajya Sabha.

Indian Polity, M. Laxmikanth(7th ed.), Chapter 24, p. 270. This distinction is crucial. For instance, **Consultative Committees**, which consist of Members of Parliament and are attached to various ministries, are not parliamentary committees because they are chaired by Ministers and do not fulfill the criteria mentioned above. Broadly, these committees are divided into two types:

Type	Nature	Examples
Standing Committees	Permanent and regular; constituted every year.	Public Accounts Committee, Departmental Standing Committees.
Ad Hoc Committees	Temporary and cease to exist after completing their task.	Joint Parliamentary Committee (JPC) on a specific Bill.

Indian Constitution at Work, Class XI NCERT (2025 ed.), Chapter 5, p. 118.

Sources: Indian Polity, M. Laxmikanth(7th ed.), Chapter 24: Parliamentary Committees, p.270; Indian Constitution at Work, Class XI NCERT (2025 ed.), Chapter 5: Legislature, p.118

2. Standing vs. Ad Hoc Committees (basic)

To understand the functioning of the Indian Parliament, we must first look at how it manages its massive workload. Since the Parliament has limited time and a vast array of complex issues to handle, it delegates much of its detailed work to **Parliamentary Committees**. These committees are broadly classified into two distinct types based on their permanency and purpose: Standing Committees and Ad Hoc Committees Indian Polity, M. Laxmikanth(7th ed.), Chapter 24, p. 270. Standing Committees are the permanent fixtures of our parliamentary democracy. They are constituted every year (or periodically) and function on a continuous basis. Think of them as the 'regular staff' of the Parliament—they ensure that the government remains accountable even when the House is not in session. Examples include the powerful Financial Committees (like the Public Accounts Committee) and the 24 Departmentally Related Standing Committees that oversee various ministries Indian Polity, M. Laxmikanth(7th ed.), Chapter 24, p. 270. In contrast, Ad Hoc Committees are temporary and 'need-based.' They are created for a specific task and cease to exist once that task is completed and a report is submitted. You can think of them as 'special task forces.' These are generally divided into two categories:

• Inquiry Committees: Formed to investigate specific incidents, such as the conduct of a member or a particular scam.
• Advisory Committees: Usually formed to examine a specific Bill in detail. These are often referred to as Select Committees (if members are from one House) or Joint Committees (if members are from both Houses) Indian Polity, M. Laxmikanth(7th ed.), Chapter 24, p. 271.

Feature	Standing Committees	Ad Hoc Committees
Nature	Permanent and continuous.	Temporary and task-specific.
Tenure	Usually reconstituted annually.	Dissolve after the report is submitted.
Examples	Estimates Committee, Business Advisory Committee.	Select Committee on a Bill, Railway Convention Committee.

Sources: Indian Polity, M. Laxmikanth(7th ed.), Chapter 24: Parliamentary Committees, p.270-271

3. The Three Pillars: Financial Committees (intermediate)

To understand the working of the Indian Parliament, we must first recognize that while the Lok Sabha holds the 'power of the purse,' the House as a whole is too large a body to scrutinize every single rupee of public expenditure. This is where the Financial Committees come in. They act as the eyes and ears of the Parliament, ensuring that the government spends money wisely, efficiently, and for the intended purposes Indian Polity, M. Laxmikanth(7th ed.), Chapter 23, p. 270.

There are three 'pillars' in this system: the Public Accounts Committee (PAC), the Estimates Committee, and the Committee on Public Undertakings (CoPU). A fundamental rule across all three is that a Minister cannot be elected as a member. This ensures that the executive (the government) is not auditing itself, maintaining a strict 'watchdog' independence.

While all three have a one-year term and use the system of proportional representation for elections, they differ significantly in their size and composition:

Feature	Public Accounts Committee (PAC)	Estimates Committee	Committee on Public Undertakings (CoPU)
Strength	22 Members	30 Members	22 Members
Composition	15 from Lok Sabha, 7 from Rajya Sabha	All 30 from Lok Sabha	15 from Lok Sabha, 7 from Rajya Sabha
Key Role	Scrutinizes CAG reports and 'post-mortem' of accounts.	Suggests 'economies' and policy efficiency before spending.	Examines reports and accounts of Public Sector Undertakings (PSUs).

The Committee on Public Undertakings, established in 1964 on the recommendation of the Krishna Menon Committee, has a specific nuance: although it has members from both Houses, the Chairperson must be from the Lok Sabha Indian Polity, M. Laxmikanth(7th ed.), Chapter 23, p. 272. This reinforces the principle that the Lower House, being directly elected, maintains primary control over financial accountability.

Sources: Indian Polity, M. Laxmikanth(7th ed.), Parliamentary Committees, p.270-272

4. Departmentally Related Standing Committees (DRSCs) (intermediate)

Imagine the Parliament as a massive organization. It is impossible for the entire House to scrutinize every single penny spent or every clause of a new law in detail. This is where the Departmentally Related Standing Committees (DRSCs) come in. Often called 'Mini-Parliaments,' these committees were first established in 1993 (originally 17, increased to 24 in 2004) to ensure that the Executive remains accountable to the Legislature, especially regarding financial matters and policy implementation Laxmikanth, M. Indian Polity, Chapter 24, p. 274.

Each of these 24 committees covers a specific set of ministries or departments. For instance, there is a committee on Agriculture, another on Defense, and so on. Their composition is meticulously balanced between the two Houses:

• Total Members: 31 members per committee.
• Lok Sabha: 21 members (nominated by the Speaker).
• Rajya Sabha: 10 members (nominated by the Chairman).

It is crucial to note that a Minister cannot be a member of these committees. If a member is appointed as a Minister after joining a committee, they must resign their seat on that committee. This ensures that the 'overseers' (the Committee) remain independent of the 'actors' (the Executive) Laxmikanth, M. Indian Polity, Chapter 24, p. 274.

The functions of DRSCs are vital for a healthy democracy. Their work usually begins after the general discussion on the Budget when the House adjourns for a few weeks. During this 'recess,' the committees examine the Demands for Grants of the concerned ministries. They don't just look at the numbers; they look at the policy goals behind them. Additionally, they examine Bills referred to them and consider the Annual Reports of ministries. One of their greatest strengths is that their proceedings are generally non-partisan—members work across party lines to provide constructive support to the administration rather than just criticizing it Laxmikanth, M. Indian Polity, Chapter 24, p. 276.

Feature	Details
Evolution	17 committees in 1993; expanded to 24 in 2004.
Structure	16 committees work under Lok Sabha; 8 under Rajya Sabha.
Primary Goal	Secure financial and administrative accountability of the Executive.
Limitation	They do not consider matters of day-to-day administration.

Sources: Laxmikanth, M. Indian Polity, Parliamentary Committees, p.274; Laxmikanth, M. Indian Polity, Parliamentary Committees, p.276

5. CAG: The Friend, Philosopher, and Guide (intermediate)

In the grand architecture of Indian democracy, the Comptroller and Auditor General (CAG) is described as the 'guardian of the public purse'. Under Article 148, the Constitution provides for this independent office to ensure that the government spends every rupee exactly as Parliament intended Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.444. However, the CAG does not work in isolation; the office acts as the 'Friend, Philosopher, and Guide' to the Public Accounts Committee (PAC) of Parliament. This relationship is crucial because while the PAC is composed of elected representatives (who may not be financial experts), the CAG provides the technical expertise and deep-dive audits necessary to hold the executive accountable.

The CAG's primary duty is to audit all expenditure from the Consolidated Fund of India, as well as those of the States and Union Territories Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.445. Once the CAG prepares the audit reports, they are submitted to the President, who lays them before Parliament. This is where the 'Friendship' begins: the PAC takes up these reports for detailed examination. The CAG assists the committee by flagging the most critical 'audit paras' (paragraphs) that require immediate attention, as the PAC often lacks the time to examine every single discrepancy Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.448.

The CAG's role is multifaceted: as a 'Friend', they attend the meetings of the PAC to help explain complex financial data; as a 'Philosopher', they provide the logic and principles of financial propriety; and as a 'Guide', they point the committee toward potential instances of waste, corruption, or inefficiency. While the CAG's role in auditing public corporations and government companies is sometimes limited or shared with private auditors, their presence remains the backbone of parliamentary financial oversight Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.447.

Sources: Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.444; Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.445; Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.447; Indian Polity, M. Laxmikanth(7th ed.), Comptroller and Auditor General of India, p.448

6. The Committee on Public Undertakings (COPU) (exam-level)

In the post-independence era, as the Indian government established massive Public Sector Undertakings (PSUs) to drive industrial growth, there was a growing need for a specialized body to oversee these "temples of modern India." This led to the creation of the Committee on Public Undertakings (COPU) in 1964, following the recommendations of the Krishna Menon Committee Laxmikanth, M. Indian Polity, Parliamentary Committees, p.273. Its primary purpose is to examine the reports and accounts of PSUs and ensure they are being managed according to sound business principles and prudent commercial practices.

The composition of COPU is a delicate balance of representation from both Houses of Parliament. While it started with fewer members, its strength was increased in 1974 to reflect the growing number of public enterprises.

Feature	Details
Total Membership	22 Members
House Ratio	15 from the Lok Sabha; 7 from the Rajya Sabha
Election Method	Proportional representation by means of a single transferable vote
Term	One year (elected annually)

One of the most critical nuances to remember for the exam is the appointment of the Chairperson. Although the Rajya Sabha contributes members to the committee, the Chairperson is always appointed by the Speaker from among those members who are drawn from the Lok Sabha Laxmikanth, M. Indian Polity, Parliament, p.229. Members of the Rajya Sabha are associated with the committee but cannot lead it, maintaining the principle of the lower house's primacy in matters involving public finance and executive accountability. Furthermore, just like other financial committees, a Minister cannot be elected as a member of the committee to prevent any conflict of interest.

Sources: Laxmikanth, M. Indian Polity, Parliamentary Committees, p.273; Laxmikanth, M. Indian Polity, Parliament, p.229

7. Appointment Protocols and Chairperson Rules (exam-level)

In our journey through the machinery of Parliament, we now arrive at a crucial junction: How are these committees actually led? The leadership of a parliamentary committee is not accidental; it follows strict protocols designed to maintain the balance of power and ensure executive accountability to the legislature. The most influential figure in this process is the Speaker of the Lok Sabha. As the guardian of the House's powers and privileges, the Speaker has the authority to appoint the Chairpersons of all parliamentary committees of the Lok Sabha Laxmikanth, M. Indian Polity, Parliament, p.230.

For Joint Committees (where members come from both Houses), the rules become even more specific. Take the Committee on Public Undertakings (COPU) as a prime example. This committee consists of 22 members — 15 from the Lok Sabha and 7 from the Rajya Sabha. They are elected using the principle of proportional representation by means of a single transferable vote. This ensures that every party, big or small, gets a fair share of representation based on their strength in the House.

However, there is a fascinating "Lok Sabha supremacy" rule regarding the Chairperson of financial committees like COPU. Even though Rajya Sabha members are part of the committee, the Chairperson must be appointed by the Speaker from among the members who belong to the Lok Sabha only. Members from the Rajya Sabha are essentially 'associated' with the committee but cannot lead it. This is a deliberate design to ensure that the committee remains directly accountable to the lower house, which holds the 'power of the purse' in our democracy.

Feature	Committee on Public Undertakings (COPU)
Total Membership	22 (15 LS + 7 RS)
Election Method	Proportional Representation (Single Transferable Vote)
Chairperson Appointed By	Speaker of the Lok Sabha
Chairperson Eligibility	Must be a member of the Lok Sabha only

Sources: Laxmikanth, M. Indian Polity, Parliament, p.230; Laxmikanth, M. Indian Polity, Parliament, p.232

8. Solving the Original PYQ (exam-level)

Now that you have mastered the structural nuances of Parliamentary Committees, this question serves as a perfect test of your ability to recall specific ratios and leadership rules. The Committee on Public Undertakings (COPU) is one of the three pillars of financial accountability in our Parliament. Applying your knowledge of its composition, you know that it consists of 22 members, with 15 members from the Lok Sabha and 7 members from the Rajya Sabha. Since the Lok Sabha's representation is double that of the Rajya Sabha, Statement 1 is a clear factual reversal and therefore incorrect.

Moving to the second statement, the logic of financial accountability dictates that the Speaker of the Lok Sabha maintains control over the committee's leadership. While members from both Houses participate in the committee, the Chairperson must be appointed by the Speaker only from among the members of the Lok Sabha. Rajya Sabha members are associated with the committee but are ineligible for the chair. This makes Statement 2 correct. By applying this systematic elimination, we confidently arrive at (B) 2 only as the correct answer.

UPSC often employs the "Factual Swap" trap, as seen in Statement 1, hoping candidates will confuse the member counts between the two Houses. Another common trap is assuming that because both Houses are represented, both are eligible for the Chairmanship. However, remembering the constitutional convention that the Lower House retains primary control over the purse strings helps you navigate such questions. Always look for these specific eligibility restrictions when studying the Financial Committees. Indian Polity, M. Laxmikanth